FTC - The Funeral Rule

Regulations Relating to Funeral Service

- Funeral Service Trade Regulation Rule ("The Funeral Rule") - Truth-In-Advertising Act - Truth-In-Lending Act - Fair Credit Reporting - Magnuson-Moss Warranty Act - Cooling off Regulation (Door to Door Sales)

FTC Purpose

- Maintain free and fair competition in United States business - Take action against monopoly, restraint of trade and unfair deceptive trade practices - Prevent anti-competitive practices in the marketplace as an aid to consumers (price fixing, etc.)

GPL (do's)

- Must provide face-to-face - Given to anyone who asks - Given during any discussion of funeral arrangements, specific goods or services, or price. -

Outer Burial Container

Any container which is designed for placement in the grave around the casket including, but not limited to, containers commonly known as burial vaults and grave liners. - Outer burial containers is NOT a PA requirement but is a requirement for some cemeteries to prevent the sinking of the ground.

True

Your basic services fee must be included in the charge for forwarding of remains.

Unembalmed Human Remains

Under normal circumstances, the public should Not view an unembalmed body which has been kept in refrigeration longer than 36hrs.

Right of Selection

What is the disclosure given to consumers stating the right to select only items they want?

Securing permits, overhead, coordinating cemetery/ crematory

What typically constitutes "Basic Services"?

40,654

penalties ($) per violation

The Rules requirements

Apply to both pre-need and at-need funeral arrangements.

Alternative Containers

Are made of fiber board, pressed wood, and composition.

False

As a Funeral provider, if a client wants ONLY good, you DO NOT need to comply with the Rule?

True

Consumers should be allowed to keep a GPL?

Statement of Funeral Goods and Services Selected: Cost Information and Disclosures

Contract form - given at the conclusion of arrangement conference, or before final disposition. - Not allowed to give to consumer on date of funeral or mail at a later date. - If the consumer does not visit the funeral home in person before the final disposition, you should still give or send a completed Statement to the consumer as soon as possible.

True

Discussion about memorial service prompts the presentation of the GPL?

July 19, 1994

FTC Funeral Industry Practices Revised Rule takes effect.

April 30, 1984

Full FTC Trade Regulation Rule for Funeral Industry Practices in effect.

False

Funeral Provider must force consumers to retain a copy of the GPL?

False

Funeral directors are allowed to refuse their service to clients that provide their own casket?

FTC Compliance

Funeral providers - any person, partnership or corporation that sells or offers to sell funeral goods and funeral services to the public. - even if only goods or only services is provided

True

Funeral providers may have a specified Pre-need GPL?

Recover in Casket Price

How can Funeral Home recover Basic Services of Funeral Director and Staff fee?

Professional Responsibility Beyond Death

Human remains held 24hrs beyond death shall be embalmed or sealed in a container that will not allow fumes or odors to escape or kept under refrigeration, if this does not conflict with religious belief or medical examination.

Human Remains Kept Under Refrigeration

Human remains kept under refrigeration over 24hrs beyond death shall be maintained at a temperature level between 35* and 40*F. The remains shall be buried, cremated or entombed within 5hrs following removal from refrigeration.

Cost of arrangements

If a consumer provides their own casket, the Funeral Director can recoup Service fees in this cost?

True

Ordinary sheltering of remains should be included in the basic services fee.

False

Pa law requires an outer burial container for all earth burials?

If you want to arrange a direct cremation, you can use an alternative container. Can be made of materials such as fiberboard or composition, with or without an outside covering.

Paraphrase the alternative container disclosure.

Information required on the GPL

Printed or type written - Name, address, & telephone number of FD place of business, including (where relevant) the address and telephone number for each branch. - the caption: "General Price List" - the effective date of the price list.

Non-Declinable Basic Services Fee

Right of Selection The goods and services shown below are those we can provide to our customers. You may choose only the items you desire. However, any funeral arrangements you select will include a charge for our basic services and overhead. If legal or other requirements mean you must buy any items you did not specifically ask for, we will explain the reason in writing on the statement we provide describing the funeral goods and services you selected.

False

The GPL does NOT have to be presented in a hospital; even if options are discussed?

Triggering Event for a GPL

The face-to-face meeting which can occur anywhere, not just at the funeral home.

GPL should be offered

When you begin to discuss: - the type of funeral of disposition that you can arrange - the specific goods and services that you offer - the prices of your goods and services

Prevents the earth (and grave) from sinking in

Why may cemeteries require an outer burial container?

False

According to the FTC regulation, Funeral Directors are required to mail GPLs when required?

Minimal Service Items on GPL

1. Forwarding of remains to another funeral home 2. Receiving remains from another funeral home 3. Direct cremation 4. Immediate burial

Three required disclosures

1. Legal requirements: states that you will charge only for the items they have selected and that you will explain any legal, cemetery, or crematory requirements in writing. 2. Embalming: relates to embalming and the need for prior approval. 3. Cash Advance Items: relates to your charges for your services in buying cash advance items - must disclose - We charge you for our services in obtaining: .......

Required Disclosures on GPL

1. The consumer's right to select only the goods and services desired. 2. Embalming - is not required by law 3. Alternative containers for direct cremation 4. The basic services fee 5. The Casket Price List 6. The Outer Burial Container Price List

Objectives of the FTC Funeral Rule

1. To increase the public's awareness of death related activities. 2. Assure the public's right to save money by being able tp decline unwanted goods and services. 3. To encourage competition between funeral directors in order to benefit the public.

False

A Funeral director may decline giving the GPL to anyone?

Funeral Goods and Funeral Services

A Funeral provider sells?

Federal Trade Commission (FTC)

Agency of federal government created in 1914 to promote free and fair competition by prevention of trade restraints, price fixing, false advertising and other unfair methods of competition.

The GPL

Is the keystone of the Funeral Rule.

Phone and Mail Inquiries

You must give certain information to people who telephone, but the Rule does not require you to send callers a General Price List.